With the exception of construction, renovation work, and other items restricted in
accordance with policies and procedures, purchases of goods or services of less than
$10,000 may be made by departments based on their discretion. Personnel with responsibility
for initiating or approving purchases should refer toFiscal Procedure F405 Procurement andFi0405-Procurementfor detailed policies and procedures relating to making purchases within this range.

What if I need to make a purchase of identical goods or modular components from the
same vendor?

To stay within this limit, departments may not make multiple purchases of or request
multiple invoices for single purchases of identical goods or modular components from
the same vendor. Requirements of identical goods or modular components from the same
vendor that total $10,000 or above must be submitted to Purchasing Services by entering
a Purchase Requisition in IRIS. Departments should make purchases under existingUniversity or State contractswhenever possible. University personnel should obtain approval from their department
head or business manager prior to making purchases. Personal liability and/or disciplinary
action may result if a purchase is made without proper authorization.

NOTE:Purchases of sensitive minor equipment valued between $1,000 and $5,000 CANNOT be
purchased on a procurement card.

Credit Purchases

Single purchases less than $10,000 may be made from vendors who will provide goods
and services on credit without a purchase order and will invoice the University after
delivery. Invoices for such purchases should be sent directly to the department receiving
the goods or services and processed for payment in accordance with UTFiscal Policy FI0410andCampus Fiscal Procedure F410.

With proper departmental authorization, employees may use personal funds to make single
purchases of $5,000 or less for goods or services for departmental use and be reimbursed
by the University. ThePetty Cash Reimbursement Request (Form T-44), must be used to request reimbursement. Requests must include a receipt that has
an itemized description and the price of each item as well as the total amount of
the purchase. A cash register tape with a description and the price of each item purchased
may be used. The receipt or cash register tape must be imprinted with the vendor's
name. SeeUT Fiscal Policy FI0525andCampus Fiscal Procedure F525for detailed information about petty cash purchases.

The University of Tennessee bylaws specify that only the president, vice presidents,
or other officials to whom delegated authority has been granted may legally bind the
University in contractual agreements. Only purchasing officers are authorized to sign
and issue purchase orders to acquire goods and commercial services. Agreements, contracts,
or purchase orders signed by other University employees are null and void and do not
obligate the University to pay for goods or services.

Who is Authorized to Sign A Contract or Agreement?

Authority to sign contracts or agreements on behalf of the University is granted only
to the president, vice presidents or certain campus officials that have been given
delegated authority as detailed inUT Fiscal Policy FI0420. This applies to all types of documents including, but not limited to:

Additionally, this policy applies even if a transaction involved is below the $10,000
purchasing limit (or if no money is involved) or if a purchase order has been issued
to cover a transaction.

NOTE:University personnel should be aware that personal liability and disciplinary action,
up to and including termination, could result from signing a contract, agreement,
or purchase order without having formal delegated authority. Departmental personnel
should contact Purchasing Services for guidance if they are approached by vendor representatives
to sign any type of agreement.

Contracts, leases, rental agreements, etc., involving equipment, supplies, equipment
maintenance, or commercial services, regardless of dollar amount, must be submitted
to Purchasing Services for handling. When necessary, Purchasing will obtain proper
administrative approval. Contracts for personal, professional, or consultant services
must be processing through the Business a Contracts office. Research contracts must
be processed through Research Administration.

Call Us If You Have Any Questions

Should you have any questions pertaining to contracts or agreements or if you are
aware of any such documents within your department that have been signed by unauthorized
personnel, please contact the appropriate person listed below:

Departments are responsible for creating asset numbers when an invoice is entered
for payment into IRIS. Below is a summary of the procedure for creating assets in
IRIS. Detailed instructions for completing this transaction are available within IRIS
transaction AS01 by going to the top of the screen and clicking on Help >> IRIS Help.

Requirement

Asset numbers are required for movable equipment with a value of $5,000.00 or above
andsensitive minor equipmentthat is valued between $1,000.00 and $4,999.99.

Go to Transaction AS01 - Create Asset: Initial Screen

The proper classification for sensitive minor equipment is 80,000.

The proper classification for movable equipment with a value > $5,000 should be chosen
from the Òdrop-downÓ list in the Asset Class data block of the Create Asset: Initial
Screen

Time-dependent Tab

On the Time Dependent (TD) tab, leave the Business area blank

The Cost Center on the TD tab is M070000001 for our campus

The Resp. cost center is the E account that will be responsible for the annual inventory
of this item

If the asset is purchased against an E account, enter the E account number in Fund
field- or -if the asset is purchased against an R account, enter the R account number in the
Fund field

Location (Building No. and Room No.) This is where the equipment will be located.
This is important for doing inventory.

Allocations Tab

Source of Funds

The Distribution Code on the Allocations Tab should be 003

Save Asset

Enter Asset # into the requisition

Definition:Justification for an emergency purchase may occur when time is limited and products
or services are needed to protect the lives or health of persons, to prevent or minimize
damage to University property, or to meet other critical requirements.

Exclusion from Competitive Bidding

Properly documented emergency purchases may be excluded from competitive bidding requirements
under certain conditions. The purchasing department should be notified by telephone
as soon as possible to expedite the purchase. The required form,Justification for Non-competitive Purchases and Contracts, must be completed within the the University's Purchasing System to confirm the emergency
situation. As time permits, the purchasing department will try to obtain bids. Consult
the Purchasing department for specific procedures.

Items Not Subject to Emergency Purchase

Emergency purchases cannot be made for commodities or services covered under an existing
contract.

The following steps must be followed in processing a Purchase Requisition that has
a corresponding Non-Competitive Justification (NCJ):

Contracts: Departments seeking to justify a sole-source purchase associated with a
contact must complete the NCJ field in the University's Contract Management System.

Requisitions/Purchase Orders: Departments must attach the NCJ form in UT Market Place.
Please see these instructions for more information

This is a summary of the procedure for requesting a purchase order (PO) change or
cancellation.

The originating department will take the initial step to request PO modification.
To communicate the request to Purchasing Services, the originating department will
send an e-mail topurchasing@uthsc.edu. The e-mail is to include the PO# along with a description detailing the changes
that need to be made. For example: change in quantity and/or change in unit price
and/or account assignment and or add additional item(s).

The following policies and procedures apply to the purchase of equipment, supplies,
and commercial services and to the disposition of surplus property at the University
of Tennessee Health Science Center(UTHSC). For guidance relating to the purchasing
functions in UT Market Place, refer to UT Market Place Training for the Purchasing function.